Many industries and sectors worldwide still feel the aftermath of the pandemic. It has affected both the global economy and the supply chain, and we are still seeing a lack of all types of products and goods around the globe, from groceries to technology.
During the past decades, supply chains focused on becoming more polished, accurate, and cost-efficient. However, all these added steps led to an increased chance of variables that could go wrong. Today, the chain is long, downstream suppliers depend on upstream suppliers, and the possibilities of delays are high. However, there is one technology that is saving the day: blockchain.
Blockchain provides a higher control of the supply chain using high-quality data to analyze supply chain dependencies. It uses real-time data and transparent verification carried out by multiple parties. Additionally, smart contracts lead to prompt resolutions in cases of disputes along the supply chain. Blockchain’s information decentralization, security, and transparency possibilities offer significant advantages to the supply chain system. Here’s a closer look at these.
Meaning, transferring control and decision-making from a centralized entity to a distributed network. Decentralization enables processes to be transparent as everyone can access the needed information. Blockchain also helps make invoicing, financial statements, and legal documentation more reliable for billing and account receivables, reducing the risk of lost revenue and errors with manual validation.
Blockchain enables data certification, product serialization, and high data immutability. It allows organizations to issue smart contracts, collect data, and securely share sensitive documentation or information internally and externally. It also leads to
traceability and tamper resistance of the blockchain to verify where materials and goods come from, where they travel through the supply chain, and who has access to them.
Blockchain enables a smoother onboarding process for new customers as it quickly, accurately, and securely shares information regarding tracking orders, accounts, payments, or production. At the same time, a blockchain network offers transparent delivery and storage for network members, resulting in an optimal, seamless supplier and partner relationship.
Undoubtedly, blockchain is transforming supply chain management that businesses have been seeing. As a result, improved efficiency. Due to the shared network infrastructure, a supply chain using blockchain technology improves communication and collaboration for everyone involved—greater traceability, contract compliance, complete visibility of financial information and performance, reducing uncertainty and risk.
Additionally, blockchain allows the integration of other technologies that improve the process, such as the Internet of Things (IoT), enhancing efficiency, visibility, and accuracy throughout the value chain.
At Globant, we ensure we understand your goals and focus on adding value to your resources by customizing services using technological solutions. Our Blockchain studio offers the most up-to-date best practices to each of our clients.